A former contractor employee involved with operations and maintenance services for the U.S. Army Corps of Engineers in South Korea has pleaded guilty to destroying records in a federal investigation. David Cruz, 37, admitted to deleting text messages in July 2021 with individuals charged with rigging bids and fixing prices on maintenance subcontracting work for the Corps. These individuals, Hyuk Jin Kwon and Hyun Ki Shin, remain fugitives.
The court filing in the Western District of Texas revealed that Cruz deleted these messages at Kwon's suggestion after receiving a notice from his employer not to destroy communications. Despite being advised of an ongoing federal investigation, Cruz attempted to cover up the deletion.
The messages in question involved discussions about securing additional bids to meet competitive requirements, with Kwon advising Cruz to deal directly rather than seeking bids from competitors. Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force emphasized their dedication to protecting taxpayer finances from fraudulent activities, stating, “The Procurement Collusion Strike Force’s commitment to safeguard taxpayer dollars from collusion and fraud is unwavering.”
Michael DeFamio, Special Agent in Charge of the Department of the Army Criminal Investigation Division in the Far East, stressed the importance of maintaining the integrity of military procurement processes. “Bid rigging and other acts of fraud against the U.S. Army not only undermine the integrity of critical procurement efforts but also put our Soldiers at risk," he said.
Stanley Newell, Special Agent in Charge of the DCIS Transnational Field Office, reiterated their commitment to tackling fraud in procurement processes. Meanwhile, FBI Assistant Director in Charge Akil Davis stated, “Mr. Cruz knowingly destroyed records that were part of an ongoing criminal investigation and has now acknowledged his crime.”
The case involved joint efforts from various law enforcement entities, including the Antitrust Division’s Washington Criminal Section, Army CID, DCIS, and the FBI. Daniel E. Lipton and Daniel P. Chung of the Antitrust Division prosecuted the case with Matthew B. Devlin for the Western District of Texas.
The Justice Department initiated the Procurement Collusion Strike Force in 2019 to combat antitrust crimes that affect government spending at multiple levels. Those with information related to the current investigation are encouraged to reach out via the PCSF website.
